(RTTNews) - A leading indicator of the Australian economy surged ahead at the fastest pace in more than a decade in February, signaling brisk growth in the coming months. At the same time, the coincident index, which is measure of current conditions, also continued to rise.

Westpac Bank and Melbourne Institute said on Wednesday that Australia's leading index rose 7.2% on an annualized basis in February, well above the long term trend of 2.8%. The annualized leading index gives an indication of how the economy will perform in the next three to nine months. The February growth rate represents the fastest since 1997.

"It is signaling that growth in the Australian economy will accelerate through 2010 to well above trend by year's end," Westpac chief economist Bill Evans said. "The index is indicating that the risk profile for growth is now tilted firmly in the upward direction."

The leading index climbed 0.5% or 1.3 points in February compared to the previous month to 257.8. Evans said the rapid growth in the leading index over the past six months had been driven by factors such as higher commodity prices, the recovery in U.S. industrial production, higher overtime worked, productivity and profits. On the other hand, the All Ordinaries index, real money supply, and dwelling approvals detracted from growth.

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